House price negotiations

As a professional landlord who buys properties for a living, I negotiate at least 20-25% below market value. We have bought 6 houses in the last quarter or so, and we follow these simple steps:

1. Research the local market intimately to learn fair prices in the area. Know which street fetches more than others
2. Target motivated sellers for better negotiation and remember the three Ds to identify them: Death, Divorce and Debt
3. Identify property flaws as leverage for a lower offer
4. Always be willing to walk away if the deal isn't favourable
5. Keep your budget and limits completely private during your negotiations. Poker face.
6. Cash buyers always have an advantage; show your financial strength
7. Consider professional representation for expert guidance and play fair but go hard

Finally, negotiate strategically, stay calm, and build relationships with local estate agents. Show them that you can perform when others get cold feet. You never know who might bring you the next deal

I deal with pre-dominantly first time buyers and have seen the property buying landscape change from auction style, with multiple bids over asking price, back to how it used to be prior to COVID. Generally the client is now starting lower with their offer and sometimes achieving around 2.5 to 5k off the asking price. Also seeing remarkably less properties going to best and final offers now.

Currently, there are good price negotiations being undertaken on either any properties that have been sticking around and not receiving enough buyer attention, these are usually in the wrong parts of town or homes without aesthetically pleasing first impressions. The other is for properties that need quite a lot of modernisation arranged immediately, mainly due to the high cost of building materials for buyers with no diy skills and builder costs being on the increase. For properties like these, we have seen deals being arranged in the 10-12% reduction range, so quite good drops. We still find that there is a nationwide shortage of "decent" properties coming to market and any that do usually have the reverse effect occurring with multiple buyers chasing them and increases of up to 10% still being seen.

I advise that when you have the offer, instruct a survey and anything they flag up is a reason for a discount. Its pointless asking for a discount on the price at the moment. No one wants to get less after a couple of years of rocketing prices and property bidding.

I do hope its going to be on the decrease though, going back to offering slightly less than the asking price is the way it should be

You can renegotiate but you need to be prepared with independent expertise and evidence ideally. With a survey, you can make an informed decision on a property, necessary repairs or defects and its market value. It could easily save you money on the initial price but also longer term on undetected issues or defects that you may not be aware of without a property survey.
Some of our customers have made savings of thousands although the average savings according to RICS are £5750 or some buyers even decide to walk away from a property and purchase another home.
It is tempting to skip a survey to save money however it can prove to be a false saving in the long term with nearly 20% of people that skip a survey facing bills of £20,000 to make their new home habitable. It is important that you ensure value for money with your property purchase, and you are likely to see the largest discounts on older properties or those in need of renovation, but bargain properties are in high demand.